Currently, the company has presence in seven countries including India, China, Indonesia, Malaysia, Nepal, the UK and UAE.
"The company launched operations in Colombo, Sri Lanka, earlier last month with over 10 properties," sources aware of the development said.
The move comes barely few weeks post the announcement of appointment of Aditya Ghosh, former IndiGo President, as OYO's chief executive officer for India and South Asia.
"The move is to strengthen the company's presence in South Asian market," they added.
However, when asked for confirmation on this development, OYO Hotels and Homes COO Abhinav Sinha said, "Sri Lanka, being a great tourist destination, is surely on the cards. We, however, can't confirm this at the moment."
OYO continues to look for opportunities to expand its international presence, he added.
"We are currently evaluating several markets in the Middle East, South East Asia and Europe," Sinha said.
The five-year-old firm aims to become world's largest hotel chain by 2023 as it expands into newer countries in the Middle East, South East Asia and Europe, its founder Ritesh Agarwal had recently said.